Derma Sciences, Inc. (Nasdaq:DSCI), a tissue regeneration company focused on advanced wound and burn care, announces that WPS Government Health Administrators (WPS), a Medicare Administrative Contractor (MAC) for Part B serving States primarily in the Midwest and National MAC for Jurisdiction 5, has retired its local coverage determination (LCD) for cellular or tissue-based products (CTPs) effective March 1, 2016. WPS now considers CTPs to be a commonly used tool for treating chronic wounds. As a result, the Company's AMNIOEXCEL ® Amniotic Allograft Membrane (AMNIOEXCEL ®) will be considered for coverage with appropriate documentation of medical necessity as a second-line therapy following standard wound care treatment. "AMNIOEXCEL ® is now eligible for coverage and reimbursement under five MAC regions with the addition of WPS. We are very pleased to offer access to our novel amniotic tissue-based allografts to additional Medicare beneficiaries for the treatment of chronic wounds," said Barry Wolfenson, Group President, Advanced Wound Care at Derma Sciences. "We continue to pursue coverage from the remaining three MACs for AMNIOEXCEL ® in order to ensure nationwide access to those who suffer from diabetic ulcers and other chronic wounds." WPS serves approximately 6.6 million Medicare Part B beneficiaries primarily in Iowa, Kansas, Nebraska, Missouri, Indiana and Michigan. WPS also serves as the Jurisdiction 5 MAC for Medicare Part A. In addition to processing claims, each MAC is also responsible for issuing LCDs that specify which healthcare products and services are reimbursable through the Medicare Fee-for-Service program in the regions under its jurisdiction. About AMNIOEXCEL ® Membrane AMNIOEXCEL ® Amniotic Allograft Membrane is a novel human placental-based tissue product. The membrane forms a protective covering over the wound while providing the key components found in human amnion including an intact ECM (extracellular matrix), cytokines and other growth factors. It easily integrates into the wound and helps provide the optimal environment to repair, reconstruct and replace wound tissue. About Derma Sciences, Inc. Derma Sciences is a tissue regeneration company focused on advanced wound and burn care. It offers a line of products with patented technologies to help better manage chronic and hard-to-heal wounds, many of which result from diabetes and poor vascular functioning. The Company sells AMNIOEXCEL ® amniotic allograft membrane and AMNIOMATRIX ® amniotic allograft suspension into the $500 million market for skin substitute products. TCC-EZ ® is a gold-standard total contact casting system for diabetic foot ulcers. Derma Sciences' MEDIHONEY ® product line is the leading brand of honey-based dressings for the management of wounds and burns. The product has been shown in clinical studies to be effective in a variety of indications. Other novel products introduced into the $14 billion global wound care market include XTRASORB ® for better management of wound exudate, and BIOGUARD ® for barrier protection against microbes and other contaminants. The Company also offers a full product line of traditional dressings. For more information please visit www.dermasciences.com. Forward-Looking Statements Statements contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release or that are otherwise made by or on behalf of the Company. Factors that may affect the Company's results include, but are not limited to product demand, market acceptance, impact of competitive products and prices, product development, completion of an acquisition, the success or failure of negotiations and trade, legal, social and economic risks. Additional factors that could cause or contribute to differences between the Company's actual results and forward-looking statements include but are not limited to, those discussed in the Company's filings with the U.S. Securities and Exchange Commission.